When it comes to lithium shares in 2023, one would be forgiven for having overlooked Sayona Mining Ltd (ASX: SYA).
The lithium stock hasn't realised the kind of year-to-date gains that its S&P/ASX 200 Index (ASX: XJO) peer Pilbara Minerals Ltd (ASX: PLS) has. Nor has it been the subject of merger and acquisition (M&A) talk, like Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE).
Still, one expert thinks Sayona Mining shares could be worth looking at. Finance professional John-Louis Judges dubbed the company "a potentially profitable investment opportunity" earlier this month, as per The Bull. Here are three reasons why.
3 reasons Sayona Mining shares could provide returns: Expert
Lithium production kicks off
Sayona Mining passed an exciting milestone earlier this year when it and partner Piedmont Lithium Inc (ASX: PLL) announced the restart of the North American Lithium (NAL) project.
The Canadian project is expected to produce 226,000 metric tonnes of spodumene annually.
Closer to the present, the company is hoping to ship 120,000 metric tonnes this year, supplying battery and electric vehicle (EV) manufacturers including Tesla and LG Chem.
Judges commented on the restart, saying:
This move underlines the company's operational capabilities and its commitment to meet increasing lithium demand.
Exploration continues
In the meantime, it's undergoing exploration in Canada and Western Australia.
Down under, it's exploring gold and lithium across the Pilbara and Yilgarn regions and boasts the Kimberley Graphite Project.
Meanwhile, it's exploring three lithium projects in Canada and is planning to complete a definitive feasibility study for its Moblan Project later this year.
Judges believes the company's "aggressive exploration campaign" bodes well for its future supply, "thereby promising long-term growth".
Sayona Mining shares could be an EV and decarbonisation winner
The final reason the expert thinks Sayona shares could be a profitable investment opportunity is in the space in which the company operates.
Lithium is an integral ingredient in batteries, which are in turn integral to EVs and the energy transition.
Thus, demand for the lithium produced by the ASX 200 company could surge in the future, helping to drive its profits. Investing in the stock could also provide exposure to the green energy market, according to the expert.
